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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />September 25, 2023 <br />6:00 o’clock p.m. <br />_____________________________________________________________________________________ <br /> <br />Page 6 of 13 <br /> <br />Walsh said it is fiscally responsible to budget for equipment replacement on a regular basis and this has <br />been done for police and public works. He said it is responsible when the City has money available in <br />funds where it will not be used to budget for these purposes. <br /> <br />Olson said the City still has the funds to pay what it owes on the 2014 bond and would be reducing the <br />levy for it one time because of already having the funds. <br /> <br />Walsh moved, Johnson seconded, to adopt Resolution No. 7405 for the Reduce Debt Levy <br />Requirement Series 2014A. VOTE: Ayes 3, Nays 1 (Benson) <br /> <br />17. ADOPT 2024 PRELIMINARY TAX LEVY – RESOLUTION NO. 7406 <br /> <br />Walsh explained that these are maximum amounts being adopted tonight. The City will adopt the final <br />levy in December but cannot go higher than the amount set in September. <br /> <br />Finance Director Olson added public comment would be received at the Truth in Taxation hearing on <br />Nov. 27 and the final levy would be adopted at the Dec. 11, 2023 meeting. He took the Council through <br />the proposed general fund revenue and expenditure budget/levy line by line in a Power Point. The overall <br />increase is proposed at 4.94 percent. The preliminary levy proposed this evening is $9,415,100, he said, <br />and compared to 2023 it is an increase of $1,028,100 or 12.3 percent. <br /> <br />Benson said the total for Orono Fire is $1.4 million which is 15 percent of the total tax levy for 2024. She <br />said portions of some other funds are also related to the Orono Fire Department. If the costs for the Fire <br />Department were not in the budget, taxes would be reduced on each home, she said. <br /> <br />Walsh said that is a good point. The City could also reduce the amount for roads or public works and <br />taxes would go down, he said. The purchases for the Fire Department need to be made whether for a new <br />Orono Fire Department or the Long Lake Fire Department because this has not been done, he said. <br /> <br />Benson said she agrees that fire has been underfunded in the past but feels that could have been rectified <br />without starting a new department. <br /> <br />Johnson moved, Veach seconded, to adopt Resolution 7406 for the 2024 Preliminary Tax Levy. <br />VOTE: Ayes 3, Nays 1 (Benson) <br /> <br />18. ADOPT 2024 PRELIMINARY GENERAL FUND BUDGET – RESOLUTION NO. 7407 <br /> <br />Benson said again, this action to adopt the preliminary general fund budget includes the Orono Fire <br />Department which is a costly venture directly impacting the general fund budget for 2024 including using <br />a one-time public services grant. She explained how she arrived at the total for $1.4 million in the budget <br />for the Fire Department. <br /> <br />Walsh said the decision was made to allocate the grant to the Fire Department because the other <br />departments are now properly funded and fire is where there is a need. <br /> <br />Veach said she felt it was very important to bring up the real costs and the cost per household and be <br />honest about it. She said the State of Minnesota ranks near the bottom of spending for Fire Departments.